Common Sense

Cavuto: Be careful what you wish for

You just might get it


Be careful what you wish for, Republicans, you just might get it.

You've been so insistent that tax rates on the wealthy not be raised, you're about to settle for a deal that likely raises them even more.

That's because of what you're offering in return...

A limit on deductions and special breaks that I think will likely raise taxes far more than simply reverting to Clinton-era rates.

Here's why:

Let's say you limit wealthier taxpayers' write-offs to no more than 50,000 dollars...I'm hearing that figure a lot...

50-grand...that's it.

Not the potentially hundreds of thousands of dollars richer filers have been enjoying...

You don't have to be a 250-grand couple to see where this grand math is going. For the richer, nowhere fast.

At a minimum, their effective tax rate jumps well beyond the old top Clinton rate of 39.6 percent.

Money printing with 45% in red over it

My gosh, limiting deductions to that degree could easily jack that top rate to 45 percent.

And I'm not even including new taxes; like that 3.8 percent surtax top bracketeers will be forking over on their investments to pay for the healthcare law...

To say nothing of much higher capital gains and dividend rates awaiting them.

Back of the napkin math on my part?

A top federal rate that climbs to 55 percent, and when you throw in higher state taxes and many cities and states promising millionaire tax hikes that curiously affect not just millionaires...

With top tax rate-- 60% in red

That brings us to 60 percent. That's 15 points higher than the top rate now.

15 points.

This isn't specious math. Add it up, very logical math.

And all courtesy a Republican strategy hellbent on ignoring math, for fear of giving in on rates.

So, in their admirable quest to keep rates where they are, Republicans risk being

Schnookered by Democrats who know they've got their opponents' number.

So blinded in their grand old quest to keep rates from moving up that the Grand Old Party doesn't even see the other side has just taken them to the cleaners.